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first you need to assess the suitability of the investment (what is your financial situation, what is your knowledge of the products/investment concerned, what is your investment objective). Once you answer those questions, you need some due diligence. This would include assessing the risk/reward profile of the investment, the time horizon, the exit opportunities/costs, the availabiity of hedges, the rationale for investing in a particular asset, the cost of entering the transaction.

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